Agriculture Productivity and Economic Growth in India: An Ardl Model

Abstract

Purpose: The research aims to investigate agricultural production and its influence on India's economic growth. Methods: The ADF test has been used to determine variable stationarity. Using secondary data from 1991 to 2020, the ARDL Model was used to estimate the long-run and short-run links between agricultural production and economic growth. Findings: Our empirical findings reveal that the GCF and inflation rate are negatively correlated with economic growth in the short and long term. In contrast, all other factors have a positive link with economic growth. Research Implication: We believe that The government has employed various tactics to maintain farm prices and profits. They imposed production limitations and subsidy programs that made direct payments to farmers. It is more efficient for the government to supply farmers with the required inputs, and farmers can use those cost-effective inputs in various agricultural operations. Future Research Suggestion: The research has certain flaws because it only looks at five different crops and evaluates their influence on economic expansion over the previous three decades. The new study, with its many variables and long year, presents an opportunity to boost India's agricultural output, despite the fact that it has several flaws.